Mid-Co Industries, Inc, is a manufacturer of electrical component connectors with locations in the United States and Canada. It is considering entering into a seven year agreement with a customer where it will supply certain connectors to the customer for their products. It will require Mid-Co to purchase a new machine and incur additional costs. The cost of the machine is $11,730,000 and will require additional annual costs of 17.5% of revenues. There is an initial working capital investment of $125,000 and which is liquidated in the final year and realized as a cash inflow. Revenues from the contract per year are shown below. Cost of goods sold is expected to be 43% of revenues. At the end of its life it is expected the machine can be sold in the used market for 15% of the original cost. Three year MACRS depreciation will be used for tax purposes and the company's average tax rate is 24% and the marginal rate is 23%. Given the risk level of this project Mid-Co requires a rate of return 1% below its weighted cost of capital. Its weighted cost of capital is 11%. Prepare an analysis to determine if this project will generate an attractive level of economic benefits. Specifically determine the net present value, internal rate of return, and whether the project should be accepted based on these criteria. Mid-Co Industries, Inc, is a manufacturer of electrical component connectors with locations in the United States and Canada. It is considering entering into a seven year agreement with a customer where it will supply certain connectors to the customer for their products. It will require Mid-Co to purchase a new machine and incur additional costs. The cost of the machine is $11,730,000 and will require additional annual costs of 17.5% of revenues. There is an initial working capital investment of $125,000 and which is liquidated in the final year and realized as a cash inflow. Revenues from the contract per year are shown below. Cost of goods sold is expected to be 43% of revenues. At the end of its life it is expected the machine can be sold in the used market for 15% of the original cost. Three year MACRS depreciation will be used for tax purposes and the company's average tax rate is 24% and the marginal rate is 23%. Given the risk level of this project Mid-Co requires a rate of return 1% below its weighted cost of capital. Its weighted cost of capital is 11%. Prepare an analysis to determine if this project will generate an attractive level of economic benefits. Specifically determine the net present value, internal rate of return, and whether the project should be accepted based on these criteria